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Author Topic: Let's talk Capitalism.  (Read 26798 times)

LordBucket

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Re: Let's talk Capitalism.
« Reply #255 on: September 25, 2013, 10:14:07 pm »

LB, you conveniently ignored a number of my arguments.

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my arguments.

I think this is going to be my last response to anyone about septic vs sewer.

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« Last Edit: September 25, 2013, 10:23:56 pm by LordBucket »
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LordBucket

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Re: Let's talk Capitalism.
« Reply #256 on: September 25, 2013, 10:40:53 pm »

I actually agree (quite strongly, infact) with LordBuckets basic premise (reducing the ammount of
work required) as I think it would allow more people to pursue their goals and thus become happy.

Thank you. And, I agree...if people didn't have to work so much and had more free time to do the things they really want to do, I think that would be a positive change. Sure, lots of people spend their time in front of a televisions, but I suspect that a fair number of them do it because they're so emotionally drained from working jobs they hate.

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I just disagree with some of the implementations.

Well, I'm flexible on the implementation. Replacing income tax with sales tax wasn't my idea, but I think that could work. And at a glance it seems like it would be more effective at the goal of reducing work requirements. It might have some issues, but that's by no means a deal breaker. It's silly to get too attached to any particular implementation. If that's a better solution, then great.

Like I mentioned in my first post in the thread, I'd like to see money be made irrelevant and go away altogether. Income tax becomes irrelevant if there's no money either. But there's what we'd like to have/be/do, and then there's practical implementation. I'd love to see the nano-disassemblers and star trek replicator quality 3d printers mentioned earlier in the thread, but there are plenty of "right now" practical things we can do to reduce work in the meantime before we get to that stage.

Eagle_eye

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Re: Let's talk Capitalism.
« Reply #257 on: September 25, 2013, 10:46:03 pm »

The problem with replacing income with sales tax is that it *massively* disadvantages the poor, because proportionally far more of their purchases aren't optional. Unless it was accompanied by a switch to socialism, you'd essentially be implementing a regressive tax.
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LordBucket

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Re: Let's talk Capitalism.
« Reply #258 on: September 25, 2013, 11:51:31 pm »

The problem with replacing income with sales tax is that it *massively* disadvantages the poor, because proportionally far more of their purchases aren't
optional. Unless it was accompanied by a switch to socialism, you'd essentially be implementing a regressive tax.

Justify that. How much is this "massive disadvantage" you're talking about? Show me.

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proportionally far more of their purchases aren't optional.

Yes, I'm sure that's true. But...so what? "Essentials" aren't generally taxed.

http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#Taxable_sales

"Nearly all jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at reduced rates. The purchase of goods for further manufacture or for resale is uniformly exempt from sales tax. Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies."

ed boy

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Re: Let's talk Capitalism.
« Reply #259 on: September 26, 2013, 05:53:34 am »

Post to the watch.
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SalmonGod

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Re: Let's talk Capitalism.
« Reply #260 on: September 26, 2013, 06:09:36 am »

While de-centralizing infrastructure/workloads may be helpful in some cases, I don't think it's really a central issue, especially to the discussion of capitalism.  I think what's more important is de-centralization of political power and resource control.  That's what will free people from being forced into meaningless work.  The job model dictates that the vast majority of people seek to be told what to do by someone wealthier, and that wealthier person will seek employees for the purpose of further increasing their personal wealth. 

This results in the far, far too much work being done that has one or both of two problems. 

1.  It's not geared towards benefiting the laborers or their communities, only the wealthy person who is paying for the work.  I know some would say that being paid for the job is a benefit, but I think it's the opposite.  The employer's incentive is to pay the employee the minimum possible, and the employee doesn't have much bargaining power to demand better because they require the job to survive.  So you get a lot of people who are paid just barely enough to get by, living paycheck to paycheck, and this stays constant throughout the working relationship.  Meanwhile, the employer is making profit.  His situation is constantly improving.  The societal effect is that resources are constantly draining from one group of people and consolidating into the hands of a shrinking handful.  As this continues, the good sides of capitalism (competition driving innovation and meritocracy) fade away to be replaced by two classes, one born into servitude for the other.  The long-term result is greatly negative to the employee.

2.  Because currency represents control over resources, the incentive is to gather as much of it as possible.  This results in a lot of work that is purely concerned with fabricated methods for manipulating the flow of currency, without doing anything of any positive benefit outside the context of currency.  As in, if currency didn't exist, the work being done would be completely incomprehensible.  It's nothing but shuffling around imaginary numbers of abstract, indirect, and purely socially constructed consequence.  I know that currency is supposed to make the process of exchanging goods and services more efficient, but this seems like the exact opposite of that to me.  Especially when we've hit a point where there is soooooooooo goddamn much of this kind of work going on, and a disturbing number of the wealthiest people have never done any real work of actual benefit in their lives.  They're just really good at the imaginary number game.  I'd be willing to wager that if this superfluous crap was swept out of the way and we were allowed to be strictly concerned with pursuing our own interests and directly working towards solving real problems, that a lot more beneficial stuff would actually get done.  Yeah, the function of the economy might be somewhat more complicated in some ways, but the amount of people and time freed up would so much more than make up for it.  Millions of people suddenly able to spend their time cleaning up their own lives and communities instead of playing with imaginary numbers.

Also, I'm greatly disturbed by how often it's repeated that the more wealth a person has, the more representative it is of more work being done on their part.  Bullshit.  There is no way in hell that the CEO of Fedex does 288x more work than me in a year.  It's physically impossible.  And considering my net worth is negative, trying to figure out how much more work than me he's done in his lifetime isn't even computable.  It's seriously offensive to me when people repeat the nonsense that money made is proportional to work done.

Finally, a person spends more than 1/3 of their waking hours working at a job.  It's 1/2 their hours, bare minimum.  If you sleep 8 hours and work 8 hours, that's 2/3 of you 24 hour day gone right there.  Half of it to work.  Then if you factor in commuting and any of life's other demands, most full-time working people are left with only a couple hours a day to invest in their own interests, and anyone who doesn't want to die of overwork at a young age (like my grandfather) will invest that time in resting and de-stressing so they can cope with the day-to-day grind.

And I have my own ideas regarding alternatives to the capitalist economy, but I'm completely out of time for now.
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LordBucket

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Re: Let's talk Capitalism.
« Reply #261 on: September 26, 2013, 05:05:23 pm »

I'm greatly disturbed by how often it's repeated that the more wealth a person has, the more representative it is of more work being done on their part.  Bullshit.  There is no way in hell that the CEO of Fedex does 288x more work than me in a year.  It's physically impossible.  And considering my net worth is negative, trying to figure out how much more work than me he's done in his lifetime isn't even computable.  It's seriously offensive to me when people repeat the nonsense that money made is proportional to work done.

I think this might be a misconceptualization.

Setting aside theft and counterfeiting, there's really only one way for a person to "make" money: for somebody else to give it to them. Right? Any time somebody "makes" money, they're not really "making" anything. Somebody else is giving it to them. The amount of money you receive is not a measure of how much "work" you do. It's a measure of how much money people have chosen to give you.

Now, why do people give other people money? Sure...there are gifts, and inheritances. But generally people give people money in exchange for perceived value received. For example, if I have a dollar and you have an apple, we might trade. You give me the apple, and I give you the dollar. To me, receiving the apple was "worth" giving you the dollar. Maybe somebody else also has a dollar but they don't like apples so they choose to not give you their dollar for an apple. To them, that apple was not worth a dollar. There's no "fundamental value" to apples. There is only what apples are worth...to the people who have money available for them to choose to give, or choose to not give it.

Whether someone has one dollar, or a hundred dollars or a million dollars...every one of those dollars, somebody chose to give to them.

Money exchanges are not measures of "work." They're measures of perceived value received. That CEO you mentioned didn't do 288 times more work than you. He convinced other people to give him 288 times as much money as you convinced people to give you.

And if those people chose to give them that money...how you can be justified being angry about it? What the CEO of Fedex does might not be worth it to you to give him 288 times your salary. But it was obviously worth it to somebody or else they wouldn't have chosen to give it to him. How is that any different than me and the other guy choosing or not choosing to give you a dollar for your apple? To him, your apple wasn't worth a dollar. Does it make sense for him to be angry because I thought your apple was worth giving you a dollar?

Why are you angry that other people think it's worth giving somebody else money?

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resource control. 
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resources are constantly draining from one group of people and consolidating into the hands of a shrinking handful.

If you're talking about money, yes that trend does exist. But why are you using the word "resources?"

If you mean, like..."natural resources" I think what you're saying doesn't describe the world very well. Money tends to consolidate, but for the most part it's not really like there's a finite number of "resources on earth" that people are fighting over. Sure, wars have been fought over oil, but for example...Bill Gates. What "resources" is he, as you phrased it, "draining from other groups of people?" Warren Buffet. Is he "draining resources" from people? Oprah? She's a billionnaire. Is she "draining resources" from people?

Well, in a way, kind of by definition, yes, if you think of money as a resource. If I give you a dollar for your apple, you're "draining money" from me in the sense that you have the dollar and I no longer do. That makes sense. But my impression is that's not what you meant.

It kind sounds to me like you're thinking of the world and money and "resource control" as if it were a game of starcraft: there are a fixed number of crystal and vespene gas nodes on the map, and people fight for control over them, and once they have control of those resources they become unavailable to other people. But while that model does describe some cases, kind of...sort of, I think it's not very descriptive of modern economics as a whole. Even in  case like oil or diamonds, the people getting rich from having control of the resources are only getting rich because they're giving those resources to somebody else, in exchange for money. More to the point though, very few rich people in the modern world became rich by "wrestling control of finite natural resource" like forests or mines. Land, yes. Plenty of real estate millionaires, but it's not like there's a shortage of land. What makes land valuable is not the land so much as what you do with it. If you want land, you can buy cheap desert land for $1000/acre, pretty much all you want. There's a huge abundance of it, and people who make money in real estate generally don't make money because they've "wrested control" of land away from other people.

Go through the Forbes list of billionaires. Do you see anybody who made their money from taking or controlling large quantities of physical resources like lumber, water, metal, etc? I don't.

So what exactly do you mean by this resource control thing you're talking about?

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Because currency represents control over resources,
the incentive is to gather as much of it as possible.

Again, that seems like an odd way to look at it.

How does currency represent control over resources specifically? Yes, if you have money, you can use that money to buy resources. But you can use that money to hire people, to pay for the processing of resources you happen to already have, etc. I don't see a strong connection to resources in particular unless you're including things like money and people as resources, in which case yes, you can use money to acquire more control over those things. But I don't think that's quite what you mean. Please clarify if I'm wrong...but again, it sounds like you're using a starcraft crystal and gas model for economics. Which...again, I don't think is a very accurate way of looking at money.

So...clarify?
« Last Edit: September 26, 2013, 05:24:34 pm by LordBucket »
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Tack

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Re: Let's talk Capitalism.
« Reply #262 on: September 26, 2013, 07:39:08 pm »

I think money for work is a combination of labor, skill and rank.

Jobs which involve really hard work usually pay better.
Jobs which require degrees and masters always pay better.
And Jobs in which you oversee other people definitely pay better.

A CEO usually needs a masters in business or more - if he's been hired in. So between skill and rank he'd make a lot of money.
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penguinofhonor

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Re: Let's talk Capitalism.
« Reply #263 on: September 26, 2013, 08:06:41 pm »

And if those people chose to give them that money...how you can be justified being angry about it? What the CEO of Fedex does might not be worth it to you to give him 288 times your salary. But it was obviously worth it to somebody or else they wouldn't have chosen to give it to him. How is that any different than me and the other guy choosing or not choosing to give you a dollar for your apple? To him, your apple wasn't worth a dollar. Does it make sense for him to be angry because I thought your apple was worth giving you a dollar?

Why are you angry that other people think it's worth giving somebody else money?

I think you're oversimplifying it too. When someone buys an apple at the store, they aren't thinking "Yeah, I'll give ten cents of this to the dude at the register, twenty to the guy who farms the apple, fifteen to the people who ship the apples to the store, and the remaining fifty-five to the CEO."

Your apple analogy is pretty spot-on, except that most of the time people choose to give their money to a corporation or group, not to any person directly. And the corporation decides how that money is divided between its workers.

The CEO didn't convince the customer to give him a larger portion of the money. The CEO convinced himself (and/or whoever else in the company makes those decisions).
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Eagle_eye

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Re: Let's talk Capitalism.
« Reply #264 on: September 26, 2013, 08:14:47 pm »

But why is it relevant whether or not people agreed to give the CEO vast amounts of money? The situation is the same either way: some people have vastly more money than they need to be comfortable, and some have vastly less. That's not an acceptable outcome, no matter how it comes about.
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Descan

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Re: Let's talk Capitalism.
« Reply #265 on: September 26, 2013, 08:21:27 pm »

Pretty sure CEO's decide their own income. Maaaaybe the board of directors? Dunno, really.

But people are resources, Bucket. ... Pretty much everything is a resource, not just lumber and iron. I mean -everything-. Insurance, computers, a person with a certain skill.
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LordBucket

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Re: Let's talk Capitalism.
« Reply #266 on: September 26, 2013, 08:26:22 pm »

When someone buys an apple at the store, they aren't thinking "Yeah, I'll give ten cents of this to the dude at the register, twenty to the guy who farms the apple, fifteen to the people who ship the apples to the store, and the remaining fifty-five to the CEO."

But every one of those people had somebody choose to give them money. The guy at the register? Somebody chose to hire him and give him money. The guy who farmed the apples? Somebody chose to give him money in exchange for the apples. The people who shipped the apples? The people who they work for chose to hire them and agreed to give them money, and the company that paid the shipping company chose to give the shipping company money. The CEO? Eirher the baord of directors chose to give him money, or it's his company, and he's therefore the one the customer is actually giving their money to, and he's the one choosing to give a portion of his money to the people who work for him.

In every case, somebody chose to give money to somebody else.

most of the time people choose to give their money to a corporation or group, not to any person directly. And the corporation decides how that money is divided between its workers.

It's not up to the customer to decide what happens to his money after he gives it away. Once he gives it to somebody else...it's now their money, and it's up to them to decide what to do with it. In your example, the decision of how to distribute the money was made before the customer bought the apple, but all the same, every time money changed hands it was because somebody chose to give someone money.

Lets assume the CEO owns the company, and look at it from his point of view. He gave money to an apple farmer in exchange for apples. At this point, he owns the apple. He then gave money to a shipping company in exchange for shipping the apple. He then gave money to a sales clerk to act as his proxy, and handle the retail exchange of giving an apple to a customer in exchange for money.

The customer in this case is giving the CEO money in exchange for an apple, and the CEO is choosing to give money to employees and contractors for doing some of the work.

Why is anything wrong with this? If there was no company and it was just you personally and you bought an apple directly from a farmer and sold it somebody else for profit, you wouldn't have any problem with that. Why do people suddenly have a problem with it when somebody buys LOTS of apples, and pays other people to do the work for him?

ed boy

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Re: Let's talk Capitalism.
« Reply #267 on: September 27, 2013, 04:58:17 am »

A big misconception I've seen in this thread:

Your pay is not a reflection of how much you produce. That's only a tiny component of your salary. The biggest factor by far is how replaceable you are.

The average burger flipper at McDonald's only earns a pittance because what he does requires minimal education and skills, and there are thousands of people with that background. The CEO of the company may earn a hundred times his wage, but that's because the CEO is a hundred times harder to replace.
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Helgoland

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Re: Let's talk Capitalism.
« Reply #268 on: September 27, 2013, 06:45:01 am »

Replacability is a function of your degree of specialization, though, isn't it? You not only being paid for the work you're doing right now, you're being paid for the work you did before and for the work you did in school/college/university. At least in theory ;)
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ed boy

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Re: Let's talk Capitalism.
« Reply #269 on: September 27, 2013, 07:58:16 am »

Replacability is a function of your degree of specialization, though, isn't it? You not only being paid for the work you're doing right now, you're being paid for the work you did before and for the work you did in school/college/university. At least in theory ;)
Only to the extent that it shows how replaceable you are. You can spend four years doing a master's degree in financial mathematics, but if you apply for a burger flipping job, you're still going to be paid a pittance. Unless you apply for a job that is related to financial mathematics, you can still be replaced by anybody that works moderately hard.

It does mean that increased automation and machinery advances will make wealth disparity worse. Your average waiter has enough competition that they are often paid below minimum wage, and expanding that competition to include specialized machines will only make them worse off. If you want to reduce wealth disparity, you need to either increase competition for higher paying jobs or reduce competition for low paying jobs. The first one ranges from difficult and expensive to impossible depending on the job, and the second one (given that a surgeon can flip burgers but a burger flipper can't necessarily perform surgery) is impossible without resorting to methods that most people would consider morally abhorrent (culling the uneducated, forbidding people from working outside their speciality, ludditism, requiring burgers to be made in an excessively complicated way that requires months of specialized training, etc).
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